The Polymarket Predicament: A Test Case for Regulation Michele Spagnuolo, a Google engineer, is accused of insider trading on Polymarket.
His defense team argues that his wagers were not subject to US regulations because they were international bets, beyond the reach of American law. This claim raises questions about jurisdiction in globalized markets.
Spagnuolo's team is making the same argument as some state attorneys general who are suing prediction markets: defining swaps to include wagers like these would lead to absurd results and could potentially turn any wager into a regulated instrument.